In a big crackdown on black money, govt blacklists 3 lakh directors of shell companies

The ministry of Corporate Affairs on Wednesday barred about 3 lakh directors of companies which have defaulted on statutory compliance. These include the directors of shell companies which haven’t filed returns for the past 3 years.

These directors as a result won’t be allowed to serve on the board of other companies. This has reportedly been done to improve the corporate governance and reduce the financial wrongdoings carried out by the shell companies.

Apart from this, the government has also removed 2 lakh shell companies from the Registrar of Companies and has also put restrictions on their bank accounts. Also it has been reported that, if the directors of these de-registered companies try to siphon off the money present in the firm’s bank account, they can attract a prison sentence of upto 10 years. Plus if the fraud involves public interest the jail sentence won’t be less than 3 yrs and a triple penalty would be imposed.

- Advertisement - - Article resumes -

The ministry has also reportedly claimed that it is tracking the action regulatory agencies are taking against professionals like chartered accountants, company secretaries and cost accountants who colluded with shell companies to carry out financial irregularities. The government also claimed that the actual beneficiaries and people behind these shell companies are being tracked.

P.P Chaudhary the new Minister of State for Corporate Affairs who took charge of the ministry on Monday was quoted as saying that:

Weeding out shell companies would not only help in checking the menace of black money but also would promote an ecosystem of ease of doing business and enhancing investors’ confidence

There have been other measures which the government agencies have taken to clamp down on shell companes. We had reported as to how the Enforcement Directorate raided hundreds of locations in 16 cities in April to hunt for shell companies.

Some of the companies which were raided had links to prominent politicians like YSR Congress chief Jagan Mohan Reddy, NCP leader Chhagan Bhujbal and a controversial Noida bureaucrat Yadav Singh. These companies were believed to be in violation of the Prevention of Money Laundering Act (PMLA) and the Foreign Exchange Management Act (FEMA) acts.


Share This Post and Support:
We need your support to survive in the media industry. Please consider paying us for the content we produce:

To know more about these payments, please click here.


Most read articles recently

Rahul Gandhi’s lucrative and seemingly clandestine means of income and his links to scam accused FTIL, Unitech

How does Rahul Gandhi earn to buy land and other properties? A mystery we try to unravel

Nitin Gadkari at the receiving end: Is there a pattern?

Indian Express has a massive interview of Union Minister Nitin Gadkari in its March 23, 2019 edition.
AM Sheikh Dawood promised of offering 10 litres of free liquor monthly to the families in his constituency on his victory

Independent candidate from Tamil Nadu promises 10 litres of free liquor every month on winning elections

An independent candidate from Tamil Nadu has come up with a strange promise of offering 10 litres of free liquor every month to every family in his constituency

Shunned by the BJP, jilted Shatrughan Sinha goes on a rampage against the party, rumoured to join Congress

Shatrughan Sinha was visibly irked and had a Twitter meltdown after the BJP declared Ravi Shankar Prasad's candidature from Patna Sahib constituency
Rahul Gandhi

Staring at an imminent defeat in Amethi, Congress on the scout to secure a safe seat for Rahul Gandhi

The Congress units of southern states have been feverishly imploring Rahul Gandhi to fight from any constituencies in southern states, apart from Amethi in Uttar Pradesh .
Prakash Raj was welcomed with pro-Modi slogans in Bengaluru

Actor-turned-politician Prakash Raj greeted with pro-Modi slogans as he went to file his nomination

Prakash Raj seemed visibly miffed with a large number of Modi supporters welcoming him with pro-Modi slogans in Bengaluru
'Rahul Gandhi is running away from Amethi, not me': Smriti Irani on rumours BJP might field her from Wayanad

‘Rahul Gandhi is running away from Amethi, not me’: Smriti Irani on rumours BJP might field her from Wayanad

Smriti Irani rubbishes rumours that have surfaced about BJP thinking about fielding Smriti Irani from the Wayanad constituency too, to counter Rahul Gandhi. 
Sapna Chaudhary denies rumours of her joining Congress

Embarrassment for Congress: Sapna Chowdhury says she never joined Congress, picture with Priyanka Gandhi old

Denying rumours, Sapna Chaudhary said that the photos in circulation on Internet were old

How Caravan and Congress’ attempts to create ‘bribegate’ before 2019 election fell flat

The 'bribegate' that Congress and The Caravan tried to cried falls flat on its face on several counts. 

AAP propagandist tweets false claim about Adani Group, deletes due to fear of defamation

Earlier Delhi's Education Minister Manish Sisodia had also tweeted false claim about Adani Group

Latest articles

Connect with us

148,877FansLike
120,534FollowersFollow
31,403SubscribersSubscribe

Don't miss these


Share This Post and Support: